Types of Assets and Advantages | New York Community Trust

What is the best asset to give at a particular time? Some assets might have advantages that your clients haven’t thought about. Consider several examples:


Publicly Traded Securities: Gifts of appreciated securities held more than 12 months (including mutual funds) offer important tax advantages. The full fair market value is deductible as a charitable contribution (up to 30 percent of your client’s adjusted gross income for gifts to a public charity) without tax on the built-up capital gains.

Retirement Plan Assets: Your clients may not realize that income taxes can take a significant portion of retirement plan assets that are left to heirs. Instead, these assets should be allocated to charity, which is not subject to income tax on the assets and non-retirement assets left to heirs; this results in the greatest benefit for both heirs and charitable beneficiaries.

Naming The Trust as the beneficiary of these assets can secure a charitable legacy for your client.

Life insurance: An unneeded life insurance policy can be given to charity.  The client may claim a charitable tax deduction, based on the policy’s current value, if he or she makes The New York Community Trust the owner and beneficiary of the policy during his or her lifetime. If your client doesn’t need the deduction, he or she can choose to name The Trust as the beneficiary of a policy at death.

Cash: Cash gifts are deductible up to 60 percent of adjusted gross income.

LLC or limited partnership interests, closely-held stock, and more… Ask us. We’re here to help you. Call Jane Wilton at (212) 686-2563.